Security has become one of the biggest challenges in every field today, the blockchain technology is not an exception but how secure is the blockchain technology?
Let me start by describing the technology. Blockchain technology entails storing various bits of digital information, known as blocks, in a public database. The information blocks are linked together using cryptographically secure links. It has grown in popularity due to the prohibition on 'double spending.' The use of the same currency in two different transactions is not permitted by blockchain.
Before learning about the security flaws in the blockchain, let's take a quick look at its components. The blocks comprise three basic pieces of information, including:
(i) Transactional information,
(ii) Identities of every party associated with the transaction and
(iii) Unique algorithmic hash for differentiating one block from others.
It is possible to add new blocks to a blockchain later for new transactions. Following the validation of a new transaction, the block receives a unique identifying code. This is a clear indication of trustworthy levels of blockchain security.
All transactions in blocks must be validated and verified using a consensus mechanism. A consensus mechanism can ensure that all transactions are correct and true. This clearly shows that blockchain provides assurance for the integrity of transactions and associated information.
Every description of blockchain technology emphasizes cryptography, immutability, and decentralization. Blockchain appears to be secure, with cryptographic security and the assurance that no one can modify data without the knowledge of other participants. Blockchain can provide a tamper-proof record of transactions.However, this does not mean that blockchain is immune to cyber-attacks and security fraud. People with malicious intent could take advantage of blockchain security flaws. Many examples of blockchain attacks have made headlines from time to time. Moreover, security is a process and not a goal. Also, the presence of advanced persistent threats means the blockchain technology is not absolutely secure.
